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gold a broken historical record in 2024, reaching $2,790 per ounce in October, an upward price trajectory stemming from heavy central bank buying, persistent inflation concerns and Federal Reserve rate cuts. As a result, investors who bought earlier this year have seen excellent returns, defying gold’s reputation as only a long-term investment.
While gold prices have fallen over the past few weeks, this could still be a good time to invest. Luciano Duque, C3 Bullion’s chief investment officer, points to China’s shift to physical gold ownership and new banking regulations favoring physical gold over paper assets as key drivers for continued growth.
But what is the best gold investment to make before 2025? We asked industry professionals this exact question. Here’s what they have to say about each gold option, how they work and who is the best.
Find out how to start investing in gold today.
This is the best gold investment before 2025, say experts
Here are four gold investments you can make before the new year. Each offers different benefits and levels of risk. The best choice It will depend on your investment timeline, risk tolerance and whether you prefer direct ownership or market exposure.
Physical gold
Physical gold in the form of coins and bars stands out as one of the safest and most reliable investment options. The main reason to invest in physical gold is that there is no counterparty risk.
“(It’s good if you want to) preserve wealth, diversify (your) portfolio and maintain direct control of (your) assets,” said Alex Ebkarian, COO and founder of Allegiance Gold.
For beginners, he recommends the following:
- Start with a one ounce gold bar from a reputable brand.
- Know key terms such as “spot price” and “premium” before buying.
- Know the difference between investment grade gold and non-investment grade gold.
- Work with reputable dealers who offer education, safe storage options and transparent pricing.
- Remember that physical gold requires a long-term outlook and comes with storage fees and premium fees up front.
Brandon Aversano, founder of The Alloy Market, recommends investing in smaller gold bars.
“They’re cheaper and easier to manage (than) bigger bars,” Aversano said. This is ideal if you need to make quick adjustments to your portfolio.
Add the right gold investment to your portfolio today.
Gold ETFs
Gold exchange-traded funds (ETFs) offer a convenient way to add gold to your portfolio without the hassle of storing physical metal.
“They are easy (to buy) through brokers and quite liquid if you need money quickly,” Ebkarian said.
But before investing in gold ETFs, consider the remaining costs. Most funds charge an annual management fee. For example, popular ETFs can charge around 0.4% per year. Also, remember that your investment depends on the operation of stock exchanges and electronic trading systems (unlike physical gold that can be held directly).
Aversano points out that ETFs can contribute to a balanced gold investment strategy.
“Many are missing (returns from) gold-related assets (such as) ETFs (because) they focus (too much) on physical gold,” he said.
Diversifying your investment types can open up more opportunities while reducing risk.
Gold mining stocks
“If you want to use the potential of the move in gold and have an appetite for risk, then investing in mining companies is a good choice,” said Ebkarian. When gold prices rise, mining companies’ profits often rise faster. You can get a higher yield than gold itself.
However, successful investing in gold mining stocks it requires careful and diligent research. You should evaluate each company’s management track record, production costs and growth prospects. Ebkarian warned that mining companies could operate in foreign countries, exposing them to political risks. They also face challenges with business partnerships and day-to-day operations.
As a result, this investment option tends to suit experienced investors who understand the gold market and stock analysis. Unlike physical gold or ETFs, mining stocks can be affected by factors beyond the price of gold.
Gold futures and options
Gold futures and options so you trade gold without owning the metal. But you are essentially betting on the future price of precious metals.
“This is the riskiest way to invest and requires special knowledge,” Ebkarian said.
This complex financial instrument is best for sophisticated investors who understand the gold market well. You need to familiarize yourself with derivatives and stay on top of changing margin requirements. Market conditions can change rapidly, resulting in significant gains or losses in a short period of time.
Bottom line
Smart gold investing before 2025 may require a mix of strategies. “Looking to the future, I expect to see more interactions between physical gold and derivatives,” Aversano said. Physical gold offers reliable protection and derivatives provide flexibility to market changes.
Before investing, consult a financial advisor determine which gold investment goal fit and risk tolerance. They can help you create a balanced strategy that protects your wealth while maintaining proper portfolio diversification.
